KUALA LUMPUR — Malaysia’s economy grew by 4.4% in the second quarter of 2025, matching the pace recorded in the first three months of the year, the central bank said.
On a seasonally adjusted basis, gross domestic product expanded by 2.1% from the previous quarter, accelerating from 0.7% growth in the first quarter.
Bank Negara Malaysia said, in a statement, robust household spending underpinned the expansion, supported by a healthy labour market and income-related policies such as higher minimum wages and increased salaries for civil servants.
Private and public sector investments also rose more quickly, buoyed by the rollout of new and ongoing projects.
In the external sector, export growth slowed, weighed down by weaker commodity shipments, although this was partly offset by continued demand for electrical and electronics products and strong tourism activity.
Imports grew at a faster pace, driven by higher demand for capital goods linked to investment projects.
On the supply side, the services sector remained the main growth driver, supported by consumer-focused and government services. Manufacturing activity was sustained by steady performance in domestic-oriented industries.
However, overall growth was tempered by a contraction in the mining sector, reflecting lower commodity production. — August 15, 2025